Opportunity Zone Continued

Dated: 07/22/2019

Views: 8

Qualified Opportunity Zone (“QOZ”) program 


  • The Qualified Opportunity Zone ("QOZ") program was created by the 2017 Tax Cuts and Jobs Act to encourage economic growth in underserved communities through tax incentives for investors who utilize “Opportunity Funds” to invest in the Zones. Along with tax benefits, it presents opportunities for real estate investment and development in those communities. U.S states and territories, including Washington, D.C., nominated areas to be designated as QOZs in 2018, and the IRS and Treasury finalized the designations that year. The U.S. Treasury Department and the Internal Revenue Service are currently conducting notice-and-comment rule making to finalize regulations for the program. This is a temporary program, set to fully sunset on December 31, 2047. 



  • There are multiple tax benefits available to investors who invest in a QOZ, if all the requirements are met. First, capital gains reinvested within 180 days into a QOZ are tax-free for up to nine years, through 2026. If that initial investment is held for five years, the tax ultimately paid on it is reduced by 10%; if held for seven years, it is reduced by 15%. In addition, gains accrued on deferred-gains funds while invested in a QOZ are tax-free if they are held for at least ten years. These investments must be processed through an “Opportunity Fund,” which is a partnership or a corporation organized for the purpose of investing in QOZ property; these funds self-certified, and must hold at least 90% of their assets in QOZ property (which includes stock, partnership interests, and/or tangible property used in a trade or business in a QOZ, such as real estate). 

Want to Advertise on this Site?

Latest Blog Posts

Leaders Speak On Racism And Real Estate

Real Estate Leaders Speak Out Against RacismTop RE brokerages recently contacted agents. A Keller Williams task force will work “to eliminate racial disparity.” Redfin plans a deeper analysis of

Read More

Tools Every Baker Should Have

Baking During Quarantine? 11 Things Your Kitchen NeedsBy Jennifer Kelly Geddes | May 18, 2020 eli_asenova/Getty ImagesDoes it seem like every post in your feed showcases a crusty

Read More

We Need Your Listings Florida Has Low Inventory Of Homes For Sale

Getty Images/RLT_Images MAY 5, 2020 Share this article: FacebookTwitterLinkedInPrintShare Fla. Had a Listing Shortage Pre-COVID – and It Still Does In 2008, Fla. had too many

Read More

Home Prices Are Still Rising In Florida

boonchai wedmakawand, Getty ImagesMAY 6, 2020Share this article:FacebookTwitterLinkedInPrintShareWhy Home Prices May Be Rising During the PandemicMany sellers are reluctant to cut prices.

Read More